Sales, operating income, net income, and EPS hit record highs
Revenue composition by process node and region in 2023
Taipei, Taiwan, March 8, 2024 (Globe Newswire) — Alchip Technologies' 2023 financial performance set a record for the sixth consecutive year. Results include new records for sales, operating income, net income and earnings per share.
Revenue for fiscal year 2023, which ended Dec. 31, reached a record $978.4 million, an increase of 112.5% compared to fiscal year 2022 revenue of $460.5 million. Fiscal 2023 operating income reached a record high of $120.7 million, an increase of 55.7% from 2022 operating income of $77.5 million. Fiscal 2023 net income reached $106.6 million, an increase of 73.3% compared to fiscal 2022 net income of $61.5 million. Earnings per share for fiscal 2023 reached a record high of NT$45.5, exceeding last year's NT$25.7.
At the same time, Alchip reported its financial results for the fourth quarter of 2023. Fourth quarter 2023 revenue was $291.1 million, compared to fourth quarter 2022 revenue of $148.3 million, an increase of 96.3% year over year. Operating income for the fourth quarter of 2023 was $39.4 million, an increase of 96.8% compared to operating income of $20.0 million for the fourth quarter of 2022. Similarly, net income for the fourth quarter of 2023 was $35.4 million, an increase of 115.7% compared to net income of $16.4 million for the fourth quarter of 2022. Earnings per share in the fourth quarter of 2023 amounted to NT$15.2, more than double the earnings per share of NT$7.16 in the fourth quarter of 2022.
Geographically, revenue from North America increased significantly year over year. North America accounted for 63% of all revenue in 2023, a significant increase from her 39% in 2022. Revenue from Asia Pacific represented 22% of total revenue in 2023, down from 38% of total revenue in 2022. Japan will account for 6% of total revenue in 2023, with the rest of the world accounting for the remaining 9%.
Alchip reaffirmed its position as a leading high-performance computing ASIC company, with high-performance computing applications, including those for artificial intelligence, accounting for 84% of its revenue. Niche and networking applications account for a total of 9%. The remaining 6% of 2023 revenue was from consumer applications.
On a process node basis, advanced technologies, defined as devices fabricated with linewidths below 7nm, accounted for 89% of revenue in 2023, up significantly from 68% in 2022. Devices manufactured in 16nm and 12nm technologies contributed 4% to 2023 revenue. Meanwhile, his ASICs in 28nm and above processes accounted for the remaining 7% of his total.
In his remarks, President and CEO Johnny Shen pointed to strong shipments of AI chips to the company's largest customers in North America as a key driver of revenue growth in 2023. He also pointed out that 70-80% of total revenue in 2023 will be product sales, and NRE (Non-Recurring Engineering) revenue will account for 20-30% of total revenue in 2023.
Alchip is traded on the Taiwan Stock Exchange and its Global Depository Receipts are traded on the Luxembourg Stock Exchange. Alchip is highly regarded in North America, Japan, Israel, and Asia for its high-performance ASIC design methodology, flexible business model, best-in-class IP portfolio, and advanced packaging technology expertise.
For more information, please visit www.alchip.com.
About Alchip
Founded in 2003 and headquartered in Taipei, Taiwan, Alchip Technologies Ltd. is a leading global provider of silicon and design and manufacturing services for systems companies developing complex, high-volume ASICs and SoCs. Alchip provides fast time-to-market and cost-effective solutions for his SoC designs in mainstream and advanced process technologies. Alchip has built a reputation as a leader in high-performance ASICs through his advanced 2.5D/3DIC designs, CoWoS/chiplet designs, and manufacturing management.. Customers include global leaders in AI, HPC/supercomputers, mobile phones, entertainment equipment, networking equipment, and other electronic product categories. Alchip is listed on the Taiwan Stock Exchange (TWSE: 3661).
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CONTACT: Charles Byers Alchip Technologies + (408)-310-9244 chuck_byers@alchip.com
